Updated for tax year 2025.
If you live or work in Arizona, you’ll likely need to file an Arizona state income tax return along with your federal return. Arizona uses a flat income tax rate, but your filing status, deductions, and credits still affect how much you owe.
This guide explains Arizona’s 2025 income tax rate, standard deduction, common deductions and credits, and updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Arizona’s tax rules to help you accurately prepare your Arizona return alongside your federal return.
What is the Arizona state income tax?
Arizona state income tax is a tax on income earned by individuals. It is collected by the Arizona Department of Revenue and helps fund state services.
For tax year 2025, Arizona applies a flat 2.5% tax rate to Arizona taxable income for all filing statuses. Arizona starts with federal adjusted gross income, then applies Arizona additions, subtractions, deductions, and credits to determine your final Arizona tax.
Arizona income tax rates and tax brackets
Arizona does not use graduated tax brackets for tax year 2025. Instead, all Arizona taxable income is taxed at one flat rate:
| Filing Status | 2025 State Tax Rate |
|---|---|
| Single | 2.5% |
| Married filing jointly | 2.5% |
| Married filing separately | 2.5% |
| Head of household | 2.5% |
If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See the Arizona individual income tax highlights for official 2025 state rate guidance.
Arizona standard deduction
Arizona standard deduction amounts for tax year 2025 match federal standard deduction amounts:
- $15,750 for single and married filing separately
- $31,500 for married filing jointly
- $23,625 for head of household
For 2025, Arizona also allows a standard deduction increase equal to 34% of qualifying charitable contributions for taxpayers who claim the standard deduction. If married filing separately, both spouses must use the same method: either both itemize or both take the standard deduction.
Arizona exemptions and credits
Arizona uses dependent exemptions and credits instead of broad personal exemption amounts for everyone. Common Arizona tax benefits include:
- Dependent exemptions reported on Form 140
- Increased standard deduction for charitable contributions (34% of qualifying contributions for standard deduction filers)
- Arizona charitable contribution credits (including qualifying and foster care charitable organizations, subject to annual limits)
- Other Arizona individual credits, such as school tuition organization credits and other nonrefundable credits listed on state forms
Eligibility and limits vary by credit type and filing status. See the Arizona individual income tax highlights and the current Form 140 instructions for details.
Arizona tax changes for 2025
Arizona continues to use a flat 2.5% tax rate for all filing statuses in tax year 2025.
Arizona also updated several 2025 items, including inflation-adjusted standard deduction amounts and an increase in the charitable contribution percentage used for the standard deduction increase (from 33% to 34%).
For 2025 forms, Arizona also included state subtraction provisions related to seniors age 65 and older, qualified tip income, qualified overtime compensation, and qualified vehicle loan interest. See Arizona Department of Revenue guidance for specific eligibility requirements and form instructions.
FAQs
The bottom line
Arizona’s 2025 state income tax uses a flat 2.5% rate, but deductions and credits can still significantly affect your final tax bill. Knowing Arizona’s standard deduction amounts and state-specific tax benefits can help you estimate what you may owe or get back.
When you’re ready to file, TaxAct can help you prepare your federal and Arizona returns in one place so you can file with confidence.
Already filed your taxes and waiting for your refund? Learn more about where your Arizona state tax refund is.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.
The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.
Citations
Arizona Department of Revenue. “Individual Income Tax Highlights.” Accessed 19 Aug. 2026.
Arizona Department of Revenue. “Individual Income Tax Forms.” Accessed 19 Aug. 2026.
Arizona Department of Revenue. “ADOR Outlines Executive Order and 2025 Tax Year Income Tax Forms.” Accessed 19 Aug. 2026.